Page 35 - DMGT402_MANAGEMENT_PRACTICES_AND_ORGANIZATIONAL_BEHAVIOUR

Management Practices and Organisational Behaviour

Notes

Notes The other contributors were Gulick, Oliver Sheldon, Mooney and Reliey, Urwick,
Weber and others. The theorists have viewed the central problem as being one where
there must be identification of tasks necessary for achieving the general purpose of the
organisation and of the grouping or departmentalising, to fulfil those functions most
effectively.

These two approaches are similar in recognising the fact that organisation is a closed system,
however, there are differences between the two.

2.1.3 Key Characteristics of the Classical Theory

Scott and Mitchell have pointed out four key pillars on which the classical organisation theory
seems to have been built. They are:
1. Division of Labour: Division of labour refers to the division of tasks of an organisation
into sub-tasks and then allots these sub-tasks or sub-parts to individuals. The allotment
should be in such a way that each individual would have a small task so that he can
specialise himself in that part with a view to improve the efficiency of the organisation
while at the same time, the total of individuals’ tasks should add up to the organisation’s
goals and objectives. The approach rests upon the simple assumption that the more a
particular job is broken down into its component parts, the more specialised a worker can
become in carrying out his part of the job and the more specialised he becomes, the more
efficient the whole organisation will be. This element is the cornerstone among the four
elements mentioned above because other three elements are dependent upon division of
labour.
2. The Scalar and Functional Processes: The scalar and functional processes deal with the
vertical and horizontal organisation. The scalar process deals with the vertical elaboration
of an organisation. In other words, it is the chain of command or the line of authority,
along which authority flows from the top (chief executive) to the bottom (first line
supervisor) and obligations and reporting from the bottom to the top. Each one in the
organisation is told who their superiors are and who are their subordinates or to whom
they are responsible and accountable in performing their job. Delegation of authority
flows from this line of command.
The functional process deals with the horizontal organisation, i.e., grouping of various
functions into units and clearly defining the relationship between the various heads of the
units. The grouping of functions can be done on the basis of purpose, process, clientele,
place and time.
3. Structure: It refers to the logical relationship of functions in an organisation arranged in
order to accomplish the objectives. These relationships are line and staff relationships.
People, departments, divisions and other segments of the organisation that are authorised
to determine the basic objectives of the business and assess their achievements constitute
the line. The staff is that part of the organisation which assists and advises the line on
matters concerning it, in carrying out its duties. For example, in a manufacturing concern,
production is a line function while personnel and finance are the staff functions.
4. The Span of Control: In order to achieve the objectives, the managers are to get the work
done from the unlimited number of workers in a large organisation. A manager cannot

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